unit cost
Cost per item
Unit cost is the expense of producing or acquiring one item.
Businesses calculate unit cost to set prices, measure efficiency, and compare suppliers: The unit cost drops significantly when we order in bulk.
In manufacturing, unit cost includes materials, labor, and overhead divided by quantity produced.
- priceMonetary value assigned
- billAmount owed, written
- expenseMoney paid out
- feePayment for service
- economies of scaleCost advantages from size
bulk discount · amount · bang for buck · charge · budget · bottom line · pricing strategy · benchmark · margin · wholesale · retail · profit · estimate · breakdown · supplier · quantity · procurement · discount
- business financeaccounting, balance sheet, revenue stream, profit margin, budget
- pricingpricing, discount price, overpricing, discounts, overcharge
- supply chainsupply, supplier, delivering, suppliers, vendor
- business mathmarkup, markdown, discount, profit, margin
- costsoverhead
- scalingscalability, power laws, horizontal scaling, self-similarity, proportionality
scope of cost measurement
unit costtotal cost
Complete expenditure required
lump sum · sum total · fixed cost · overhead